General Outline On Fair Sector in Turkey

1. INCENTIVES OF MINISTRY OF ECONOMY

Ministry of Economy of Turkey supporting entrepreneurs’ attendance to various fairs by recompensing companies’ expenses for attendance to fairs and fair organizing companies’ advertising expenses in accordance with internal legal notices of MoE. In this regard, companies are welcomed to apply to the MoE, particularly to General Directorate of Export which is responsible authority, for obtaining relevant subsidies. Companies could attend to international fairs personally and as a part of national sectorial team. Specific sectorial teams for attendance to fairs are being organized by Fair Companies certified by Turkish Chamber of Commerce.

2. SUPPORT OF TURKISH CHAMBER OF COMMERCE

In accordance with Law numbered 5174 on the Union of Turkish Chamber of Commerces (TCoC), within TCoC had been organized separate Fair Directorate. This division is assigned to analyze and determine applications about scheduling fairs in Turkey, and to give “Certificate of Authority” to fair companies.

The main objectives of the Directorate is to develop fair sector in line with the general interests of the Country and sector, to make the sector attain global standards and within this context, to provide arrangements of fair activities to be made by competent companies within a program in appropriate fields.

With the purpose of effective and comprehensive promotion of fairs in Turkey and considering the need for a source that can be used by entrepreneurs to evaluate the possibilities of company promotion by attending to several fairs the Directorate running thematic website http://www.fairguide.org.tr/

3. THE PROCEDURES AND PRINCIPLES REGARDING ORGANIZING FAIRS IN TURKEY

TCoC on 3th of November 2015 issued a Decree №94 on “The Procedures and Principles Regarding Organizing Fairs in Turkey”, which is became an basis for organizing of fairs in Turkey.

In accordance with article 3 of the Principles the following types of fairs can be organized:

a) General fairs are the activities which last not more than fifteen days and include at least fifty participants and are not based on a particular sector or product group and where various goods and services are exhibited and their commercial promotions are made all together and social and cultural activities may take place.

b) Trade fairs are the activities lasting not more than ten days and including at least twenty participants and which aim at increasing technological and practical information exchange between participants producing goods and services for a certain product or service group or the sector or groups directly related to the sector and creating information exchange platform for commercial cooperation and giving orders of products required.

National and international defense industry and military aviation trade fairs can be organized by the firms which have certificate of authority for domestic fair organization under the responsibility of Directorate General of Turkish Armed Forces Foundation and under the auspices and with the support of Ministry of National Defense.

It’s necessary for a fair to be an international fair and to use “international” title to be organized at least two times with the same or similar name and same content in the last five years by the same organizer; besides the number of foreign participants has to attain fifteen percent among the total direct and indirect (via their attorneys) participants or the total stand area allocated to the foreign participants has to reach at least 10% of the total size of net square meter stand area or the number of foreign visitors has to reach two point five percent of the total number of visitors.

4. QUALIFICATIONS REQUIRED FOR FAIR COMPANIES

To be able to organize a fair, organizing company should obtain a “Certificate of Authority”. This certificate is issuing by a Chamber of Commerce of which the company is a member. Certificate is being issued for a 2 year in case of the first application, but after this term certificate is being extended for a 5 years.

For Certificate of Authority could apply

 limited or joint stock companies can apply for the certificate of authority,

 which are determined in the main contract to carry out conferences, seminars, symposium and similar activities provided that exclusive fair activities and all publishing, advertising and organization works aiming at promotion of this activity are relevant with fair content and whose other work issues out of these activities are not included in their main contracts,

 which have at least two hundred and fifty thousand Turkish Lira paid capital and save this capital in its assets,  which have evidenced that they meet aforementioned features by Certificated Councilor’s Report.

5. FAIR CALENDAR

Article 4/1/g contains term “Main Fair Calendar”, that means the list containing the fairs which the fair companies holding certificate of authority have applied for, in accordance with these Principles until the end of the 1st day of August of the year before the year in which the fair will be organized, announced by the TCoC in September of the year before the respective year.

As it might be understood from the definition given above, the Fair Companies must apply to chamber of commerce on borders of which a fair would be held to plan the schedule of fairs.

Fair organizing applications found eligible by the Union are included in the main fair calendar. Main fair calendar is published in Turkish Trade Registry Gazette and website of the Union in September of the year before the related year.

Change application about place and date of a fair in fair calendar is made to the chamber/commodity exchange after the publishing of the main fair calendar of related year.

Fairs are organized on the date and in the place announced in the fair calendar and any further permission from any other authorities is not required.

Cancellation application is made with the notarized copy of the decision of the authorized body of the company and the document regarding that eight hundred and seventy five Turkish Lira has been deposited into the bank account determined by the TCoC not later than four months in advance as of the fair start date stated in the calendar, and one thousand and seven hundred and fifty Turkish Lira has been deposited into the bank account not later than two months in advance when the application is made.

Change and cancellation applications received by the relevant chamber exchange are conveyed to the Union within ten days. The procedures regarding change and cancellation application which are determined to be eligible for the Principles are carried out on the fair calendar of related years published on the website of the Union.

The organizer shall be responsible for the damages of participants will suffer due to the change or cancellation of the fair and the Union shall not be held responsible for this damage.

6. DECREE ON SUPPORT OF SECTORIAL DOMESTIC FAIRS №2014/4, PUBLISHED IN OFFICIAL GAZETTE DATED 7/8/2014

In accordance with the Decree the fair companies organizing domestic fairs could benefit from incentives of MoE oriented to promotion of domestic fairs abroad. Considering the scope of promotion project, MoE funds at least %75 of promotional expenses and maximum amount of financial support is 150 000 USD for advertising abroad and 50 000 USD for internal advertising. Advertising and promotional activities of the fair companies should pursue firstly a raise in number of foreign participants and secondly a presentation of the relevant of economy in a best way. Fair companies required to be a holder of a “Certificate of Authority”.

7. DECREE ON SUPPORT OF ATTENDANCE TO FAIRS HELD ABROAD №2009/5 PUBLISHED IN OFFICIAL GAZETTE DATED 30/12/2009

Decree aims to support companies, established in accordance with provisions of Turkish Commercial Code, which are members of the Turkish Union of Exporters and associations, federations and unions of manufacturers located in Turkey.

The Decree also provides incentives oriented to fair companies appointed by MoE for organization of attendance of Turkish companies to fairs held abroad and promotion of Turkish companies.

Decree draw the line between Collective and Individual Attendance to the fairs. Types of Collective Attendance are might be listed as following:

 National Attendance – collective attendance of Turkish companies to the fairs with general or sectorial characteristics under coordination of a fair company appointed by MoE.

 Attendance to Fairs of Turkish Export Products – attendance to fairs abroad pursuing general promotion of Turkish Export Products under coordination of a fair company appointed by MoE. These types of fairs generally being organized only for attendance of Turkish companies.

 Attendance to Sectorial Fairs of Turkish Export Products - attendance to fairs abroad pursuing sectorial promotion of Turkish Export Products under coordination of a fair company appointed by MoE. These types of fairs generally being organized only for attendance of Turkish companies.

 Attendance to Sectorial Fair with Attendance of Foreign Companies - attendance to international fairs abroad with attendance of foreign companies, pursuing sectorial promotion of Turkish Export Products under coordination of a fair company appointed by MoE.

Support for members of Collective Attendants to different fairs might be required by a fair company, whereas the Individual Attendants should apply to the MoE personally. In accordance with article 13 of the Decree, MoE refunds expenses of a fair company and fair attendants upon their application with all relevant documents within 3 months after the ending of the fair.

8. INCENTIVES REGARDING THE FAIRS HELD ABROAD

For attendance of a company to a fair economic class travel expenses of two representatives would be refunded for stands with an area of 50 m2 , if an area of stand is more than 50 m2 travel expenses maxim of three representatives would be refunded. Also 50% of attendance fee (including stand rent fee, decoration and design fee, transportation of products that will be exhibited, customs duty, service of a fair company) is under refunding. However the total amount of support is not allowed to exceed 10 000 USD for fairs having general qualification and 15 000 USD for International Sectorial fairs. Associations, federations and unions of manufacturers are being refunded in amount of 75% of their expenses related to fair. 50% of transportation costs of companies that exhibited facilities transportation of which expensive due to its size range also under support of MoE in maximum amount of 10 000 USD.